Bioglan sinks to low over acquisition fears

BIOGLAN Pharma, the dermatology company, hit another new low yesterday amid fears that the company will be unable to complete its planned skincare acquisition.

The shares fell 1.5 to 117.5p. They have tumbled from a high of 745.5p this year and fell 29pc on Friday after two institutions cut their holdings in the business, and pressured Tony Sadler to end his dual role as chairman and chief executive.

The company has an exclusivity agreement with the company, but that is believed to lapse at the end of the month. Other skincare companies, including Ireland's Elan, are believed to be interested in the BMS business.

Bioglan also refused to confirm industry rumours that the BMS deal would be in the form of an upfront payment at a third of the total purchase price, and then stagger further payments over three years.

"There is nothing we can say at this stage," a spokesman said. The possibility of an equity issue for the company has been made difficult by the collapse in Bioglan's share price.

Mr Sadler, who has so far resisted the splitting of his role, is believed to be unwilling to fund the deal with a rights issue because he does not want his 35pc stake to be diluted.